Question

Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would lead to greater productivity in the weaving industry? Check all that apply. A) Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts B) Offering free public education to every worker in the country C) Subsidizing research and development into new weaving technologies D) Imposing restrictions on foreign ownership of domestic capital

Answer 1

A) Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

B) Offering free public education to every worker in the country

C) Subsidizing research and development into new weaving technologies

Step-by-step explanation:

Encouraging savings does not mean to not buy the necessary stuff of survival, rather it creates an urge in public to save and fr this to earn more, so that there is no compromise in spending and accordingly with the aim to earn more, will increase productivity.

Offering education is ital to understand the economy and its growth and that each individual can contribute in the growth.

If the expense of research and development is subsidized then the growth in business is expected as new technology will be a boost to more output.

Imposing restriction on foreign ownership will create a low capital investment in the island, as it is small and there is lack in the amount of funds available.